Do you place bets? Find out how to report earnings on income tax

Experts explain how to correctly report game prizes to avoid tax complications

With the growing interest in betting and lottery games, such as Lotofácil and Mega-Sena, it is necessary to understand how to declare the winnings obtained in income tax to avoid complications with federal revenues. In 2023, the government introduced MP for sports betting, imposing a 30% rate on prizes above R$2,112.

“It is worth pointing out that IR is withheld at source, in the same way as lottery prizes. Therefore, the amount transferred in sports betting will already have taxes deducted in accordance with current tax laws,” explains Cristiano Maschio, financial services specialist and CEO of fintech Qesh.

How to declare?

According to current legislation, proceeds from online betting must be reported in the “Proceeds subject to exclusive/definitive taxation” tab, option “12 – Others”. Next, you need to communicate the name and CNPJ of the bookmaker, as well as the description and amount received. In the case of foreign websites, taxpayers must use Carnê-Leão Web to make their monthly tax payments.

“The process is similar for federal lottery winnings. The difference consists in the information coming from the paying source, which must be Caixa, responsible for managing the lotteries,” explains Maschio.

If you have doubts or difficulties in submitting a declaration, the specialist advises you to seek advice from an accountant or a professional specialized in tax matters: “This way it is possible to guarantee compliance with tax obligations and avoid possible sanctions by the Agency Federal Revenue,” he says.

Finally, Maschio underlines that the correct declaration of earnings deriving from online betting is the responsibility of the taxpayer and contributes to the transparency and legality of this ever-growing market. This year the forecast is that 43 million declarations will be delivered by May 31, the deadline for submission.

you bet

In December 2023, law 14790 was approved which regulates fixed-odds and randomized games, known as online games. The approval of the standard represents progress in the segment that benefits from the decriminalization of the sector. The amount foreseen as a grant is 30 million reais. Regulation influences the increase in tax collection. It is pre-established that 15% of the prize value will be paid.

Darwin Henrique da Silva Filho, CEO of Esportes da Sorte, considers declaring income tax capital gains an advance, but also believes the benefits could be even greater for the company.

“Regulation is long overdue for the betting industry to function within the framework of the law. This also represents a guarantee regarding the rights and duties of the players. The declaration of proceeds from the prizes contributes to a collection that will be distributed among important sectors such as healthcare, security, education and sports,” he explains.

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Source: Terra

Rose

Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.